BDDK Data Shows Continued Decline Despite Slowdown in KKM

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BDDK Data Shows Continued Decline Despite Slowdown in KKM

The Banking Regulation and Supervision Agency (BRSA) announced the banking sector data as of December 19, 2024. The data showed a continued downward trend in currency-protected Turkish Lira deposits (KKM) and participation accounts.

Decline in KKM accounts continues As of December 13, the currency-protected TL deposits and participation accounts in the banking system were recorded at 1 trillion 169.52 billion TL. The previous week, this figure was at 1 trillion 184.68 billion TL, and at the beginning of the year, it was noted as 2 trillion 626.35 billion TL. This significant decline observed since the beginning of the year indicates that KKM accounts are losing their attractiveness and investors are turning to alternative instruments.

Exits from currency-protected accounts can be attributed to factors such as economic uncertainties and the exchange rate trends. The banking sector may implement measures to increase yields in response to this trend or redirect towards different investment instruments.

Other banking sector data According to BRSA data, the total deposits in the banking sector increased to 18 trillion 551.28 billion TL, showing a 3.18% increase compared to the previous week. The figure at the beginning of the year was recorded as 14 trillion 843.08 billion TL. This increase can be seen as a sign of vitality in overall economic activity.

The total loans of the banking sector were reported as 15 trillion 640.19 billion TL as of December 13. This figure was 15 trillion 491.16 billion TL the previous week and 11 trillion 630.25 billion TL at the beginning of the year. This increase in loans indicates that demand is rising and banks' lending tendencies are continuing.

Foreign currency positions and other values According to BRSA data, the net general position of foreign currency in the banking sector decreased from 68.11 billion TL the previous week to 59.82 billion TL as of December 13. This also indicates that the decrease in foreign currency positions is ongoing. Additionally, the on-balance sheet foreign currency position was reported as -529.19 billion TL.

On the other hand, the non-performing loans of the banking sector dropped to 286.78 billion TL, while securities like total loans increased by 0.55% to reach 5 trillion 105.88 billion TL. These data indicate that growth in the sector needs to be balanced with risks.